[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6143 Introduced in House (IH)]







110th CONGRESS
  2d Session
                                H. R. 6143

  To make technical corrections to the Pension Protection Act of 2006 
 relating to the Employee Retirement Income Security Act of 1974, and 
                          for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 22, 2008

     Mr. Andrews (for himself and Mr. George Miller of California) 
 introduced the following bill; which was referred to the Committee on 
   Education and Labor, and in addition to the Committee on Ways and 
 Means, for a period to be subsequently determined by the Speaker, in 
   each case for consideration of such provisions as fall within the 
                jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
  To make technical corrections to the Pension Protection Act of 2006 
 relating to the Employee Retirement Income Security Act of 1974, and 
                          for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Pension Protection 
Act ERISA Amendments of 2008''.
    (b) Table of Contents.--The table of contents is as follows:

Sec. 1. Short title and table of contents.
                TITLE I--WORKER PROTECTION MODIFICATIONS

Sec. 101. Repeal of new rules for termination date in the case of 
                            bankruptcy of employer.
Sec. 102. Age requirement for commercial airline pilots.
Sec. 103. Pro-Rata Recovery under ERISA.
Sec. 104. Correction of effective dates for collectively bargained 
                            plans.
Sec. 105. Retiree health benefit protections in group health plans.
                 TITLE II--MULTIEMPLOYER MODIFICATIONS

Sec. 201. Crediting and termination of surcharges in connection with 
                            multiemployer plan in critical status upon 
                            adoption of rehabilitation plan.
Sec. 202. Schedules required to be provided by multiemployer plans in 
                            endangered status.
Sec. 203. Amendments to funding rules for multiemployer plans.
                TITLE III--SINGLE-EMPLOYER MODIFICATIONS

Sec. 301. Asset smoothing.
Sec. 302. Prohibited payments.
Sec. 303. Clarification of age discrimination rules in connection with 
                            the Young Women's Christian Association 
                            Pension Plan.
Sec. 304. Prohibited transactions exemption for divestment of employer 
                            securities.
Sec. 305. Special rule relating to at-risk status for employees offered 
                            early retirement in 2006 or 2007.
Sec. 306. Phase-in of funding target.
                 TITLE IV--SMALL EMPLOYER MODIFICATIONS

Sec. 401. Treatment of employees of certain cooperatives as affiliated 
                            service group employees.
             TITLE V--PROHIBITED TRANSACTIONS MODIFICATIONS

Sec. 501. Clarification of parties in interest affected by prohibited 
                            transaction exemption for block trading.
Sec. 502. Clarification of scope of prohibited transaction exemption 
                            for electronic communication networks.
Sec. 503. Increase in maximum bond amount for plans holding employer 
                            securities.

                TITLE I--WORKER PROTECTION MODIFICATIONS

SEC. 101. REPEAL OF NEW RULES FOR TERMINATION DATE IN THE CASE OF 
              BANKRUPTCY OF EMPLOYER.

    (a) In General.--Section 404 of the Pension Protection Act of 2006 
(Public Law 109-280; 120 Stat. 928) (including the amendments made 
thereby) is hereby repealed.
    (b) Effective Date.--Subsection (a) shall be effective as if 
included in the enactment of the Pension Protection Act of 2006.

SEC. 102. AGE REQUIREMENT FOR COMMERCIAL AIRLINE PILOTS.

    (a) Single-Employer Plan Benefits Guaranteed.--Section 4022(b)(3) 
of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 
1322(b)(3)) is amended, in the flush matter following subparagraph (B), 
by adding at the end the following: ``If, at the time of termination of 
a plan under this title or at the time of the freezing of benefit 
accruals under a plan pursuant to subsections (a)(1) and (b) of section 
402 of the Pension Protection Act of 2006, regulations prescribed by 
the Federal Aviation Administration require an individual to separate 
from service as a commercial airline pilot after attaining a specified 
age which is less than age 65, the first sentence of this paragraph 
shall be applied to an individual who is a participant in the plan by 
reason of such service by substituting such age for age 65.''.
    (b) Aggregate Limit on Benefits Guaranteed.--Section 4022B(a) of 
such Act (29 U.S.C. 1322b(a)) is amended by adding at the end the 
following: ``If, at the time of termination of a plan under this title 
or at the time of the freezing of benefit accruals under a plan 
pursuant to subsections (a)(1) and (b) of section 402 of the Pension 
Protection Act of 2006, regulations prescribed by the Federal Aviation 
Administration require an individual to separate from service as a 
commercial airline pilot after attaining a specified age which is less 
than age 65, this subsection shall be applied to an individual who is a 
participant in the plan by reason of such service by substituting such 
age for age 65.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to benefits payable on or after the date of the enactment of this 
Act.

SEC. 103. PRO-RATA RECOVERY UNDER ERISA.

    (a) In General.--Section 502 of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1132) is amended--
            (1) in subsection (a)(3)(B)(ii), by inserting ``subject to 
        subsection (b)(4)'' before ``the terms of the plan''; and
            (2) in subsection (b), by adding at the end the following 
        new paragraph:
    ``(4)(A) No action by a fiduciary under subsection (a)(3)(B)(ii) to 
enforce subrogation rights under the terms of the plan which is brought 
against a third party to seek reimbursement from a recovery by a 
participant or beneficiary may result in recovery by the fiduciary of 
an amount that is greater than an amount that bears the same ratio to 
the recovery by the participant or beneficiary as the amount of the net 
tort recovery by the participant or beneficiary bears to the total 
compensatory damages awarded to the participant or beneficiary.
    ``(B) In an action described in subparagraph (A), any subrogation 
claim of the fiduciary as calculated pursuant to subparagraph (A) shall 
be reduced by an amount that is equal to the percentage that the costs 
of the tort recovery bear to the total sum upon which the costs of the 
tort recovery are computed.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply with respect to actions (described in section 502(b)(4) of the 
Employee Retirement Income Security Act of 1974 as amended by 
subsection (a)) commenced on or after the date of the enactment of this 
Act.

SEC. 104. CORRECTION OF EFFECTIVE DATES FOR COLLECTIVELY BARGAINED 
              PLANS.

    (a) Periodic Pension Benefit Statements.--Section 508(c)(2) of the 
Pension Protection Act of 2006 (Public Law 109-280; 120 Stat. 952) is 
amended--
            (1) by striking ``paragraph (1) shall be applied to 
        benefits pursuant to, and individuals covered by, any such 
        agreement by substituting for `December 31, 2006' the earlier 
        of'' and inserting ``the amendments made by this section shall 
        not apply to plan years beginning before the earlier of''; and
            (2) in subparagraph (A)(i), by striking ``December 31, 
        2007'' and inserting ``December 31, 2006''.
    (b) Requirements for Employer Stock Diversification.--Section 
901(c)(2) of the Pension Protection Act of 2006 (Public Law 109-280; 
120 Stat. 1032) is amended--
            (1) by striking ``paragraph (1) shall be applied to 
        benefits pursuant to, and individuals covered by, any such 
        agreement by substituting for `December 31, 2006' the earlier 
        of'' and inserting ``the amendments made by this section shall 
        not apply to plan years beginning before the earlier of''; and
            (2) in subparagraph (A)(i), by striking ``December 31, 
        2007'' and inserting ``December 31, 2006''.
    (c) Effective Date.--The amendments made by this section shall 
apply as if included in the enactment of the Pension Protection Act of 
2006.

SEC. 105. RETIREE HEALTH BENEFIT PROTECTIONS IN GROUP HEALTH PLANS.

    (a) Amendments to ERISA.--
            (1) In general.--Subtitle B of title I of the Employee 
        Retirement Income Security Act of 1974 is amended by adding at 
        the end a new part 8 as follows:

         ``PART 8--EMERGENCY RETIREE HEALTH BENEFIT PROTECTIONS

``SEC. 801. PROHIBITION AGAINST POST-RETIREMENT REDUCTIONS OF RETIREE 
              HEALTH BENEFITS BY GROUP HEALTH PLANS.

    ``(a) In General.--Notwithstanding that a group health plan 
described in subsection (b) may contain a provision reserving the 
general power to amend or terminate the plan or a provision 
specifically authorizing the plan to make post-retirement reductions in 
retiree health benefits, it shall be prohibited for any group health 
plan, whether through amendment or otherwise, to reduce the benefits 
provided to a retired participant or his or her beneficiary under the 
terms of the plan if such reduction of benefits occurs after the date 
the participant retired for purposes of the plan and reduces benefits 
that were provided to the participant, or his or her beneficiary, as of 
the date the participant retired. Any group health plan provision which 
purports to authorize the reduction of benefits in a manner 
inconsistent with the foregoing prohibition shall be void as against 
public policy.
    ``(b) Group Health Plan.--The term `group health plan' shall have 
the same meaning as in section 607(1).
    ``(c) Prohibited Reduction of Benefits.--As used in this section, 
references to a prohibited reduction of benefits means any group health 
plan amendment or other action which has the effect of--
            ``(1) canceling, decreasing or limiting the amount, type, 
        level, or form of any benefit or option provided prior to the 
        amendment or action;
            ``(2) imposing or increasing the out-of-pocket costs a 
        retired participant, or his or her beneficiary, must pay in 
        order to keep or obtain any benefits that were provided to the 
        participant or beneficiary prior to the amendment or action; or
            ``(3) modifying the manner by which medical services are 
        delivered under the plan so that after the amendment or action 
        a retired participant, or his or her beneficiary, has less 
        ready access to the delivery of any such medical services than 
        the participant or beneficiary had prior to the amendment or 
        action.
    ``(d) Treatment of Plan Termination.--
            ``(1) In general.--Subject to paragraph (2), a termination 
        of a group health plan shall be treated as violating the 
        prohibition contained in this section if, after the 
        termination, the plan sponsor of the terminated plan fails to 
        continue to provide to the participants who retired prior to 
        the termination and to their beneficiaries the same retiree 
        health benefits that were provided prior to the termination.
            ``(2) Waiver.--Paragraph (1) shall not apply in the case of 
        the termination of a group health plan if the Secretary issues 
        a waiver under this paragraph in connection with such 
        termination. The Secretary shall issue such a waiver if and 
        only if the plan sponsor demonstrates to the satisfaction of 
        the Secretary, in accordance with regulations prescribed by the 
        Secretary, that such plan sponsor will be unable to continue in 
        business unless such a waiver is issued.
    ``(e) Consent or Authorization by Participant.--A reduction of 
benefits shall not be treated as prohibited by this section if such 
reduction is consented to in writing by any retired participant or is 
authorized with respect to the retired participant under the terms of 
one or more agreements which the Secretary finds to be collective 
bargaining agreements between one or more employee representatives who 
were representing such participant at the time of the entry into such 
agreement and one or more employers.

``SEC. 802. ADOPTION BY GROUP HEALTH PLANS OF PROVISION BARRING POST-
              RETIREMENT REDUCTIONS IN RETIREE HEALTH BENEFITS.

    ``Every group health plan shall contain a provision which expressly 
bars the plan, or any fiduciary of the plan, from reducing the benefits 
provided under the plan to a retired participant, or his or her 
beneficiary, if such reduction affects the benefits provided to the 
participant or beneficiary as of the date the participant retired for 
purposes of the plan and such reduction occurs after the participant's 
retirement.

``SEC. 803. RESTORATION BY GROUP HEALTH PLANS OF BENEFITS REDUCED AFTER 
              RETIREMENT.

    ``(a) In General.--The plan sponsor of each group health plan shall 
provide, in accordance with this section, the option of benefit 
restoration to each retired participant that meets the following 
requirements:
            ``(1) The retired participant is entitled to benefit 
        coverage under the plan as of the date of enactment of the 
        Emergency Retiree Health Benefits Protection Act of 2007.
            ``(2) The amount, type, level, or form of any benefits or 
        option provided to the retired participant under the plan as of 
        the date the participant retired was reduced after the 
        participant's date of retirement. For purposes of the preceding 
        sentence, the term `reduced' has the same meaning as in section 
        801(c).
            ``(3) The retired participant has elected to restore 
        benefits under the plan within the restoration period 
        prescribed by subsection (c) and in accordance with such 
        procedures established by the plan pursuant to regulations of 
        the Secretary.
    ``(b) Exception for Certain Plans.--In accordance with regulations 
prescribed by the Secretary, subsection (a) shall not apply to any 
group health plan with less than 100 participants both on and after the 
date of enactment of the Emergency Retiree Health Benefits Protection 
Act of 2007.
    ``(c) Restoration Period.--The term `restoration period' means the 
period which--
            ``(1) begins not later than 1 year after the date of 
        enactment of the Emergency Retiree Health Benefits Protection 
        Act of 2007;
            ``(2) ends before 2 years from such date, unless extended 
        by the Secretary pursuant to section 804(g); and
            ``(3) is of no less than 60 days duration.
    ``(d) Notice Requirements Concerning Restoration of Benefits.--In 
accordance with regulations prescribed by the Secretary, each group 
health plan subject to the requirements of subsection (a) shall, within 
no less than 30 days prior to the commencement of the plan's 
restoration of benefits period, provide written notice to each retired 
participant of the plan who meets the requirements of subsection (a) of 
the following:
            ``(1) A description of all benefits the retired participant 
        is entitled to have restored.
            ``(2) The administrative procedure established under the 
        plan which may be used to submit a claim for the restoration of 
        any benefits.
            ``(3) An itemization of the value of each benefit the 
        retired participant is entitled to have restored, as determined 
        in accordance with regulations of the Secretary, and the total 
        value of all such benefits.
            ``(4) A description of any post-retirement increases in 
        retiree health benefits the retired participant received which 
        the plan sponsor could rescind if the retired participant 
        asserts a claim for the restoration of benefits.
            ``(5) An itemization of the value of each retiree health 
        benefit the plan sponsor could rescind, as determined in 
        accordance with regulations of the Secretary, and the total 
        value of all such benefits.
            ``(6) If the plan sponsor has filed an application for a 
        substantial business hardship exemption under section 804, the 
        date such application was filed, the date notice of such 
        application was given to retired participants entitled to 
        submit a claim for the restoration of benefits, and the status 
        of such application as of the date of the notice sent pursuant 
        to this subsection.
            ``(7) Such other information in such form and detail as may 
        be prescribed by the Secretary to carry out the purposes of 
        this part.
    ``(e) Deadline for Restoration of Benefits.--Regardless of any 
extension that may be granted by the Secretary pursuant to section 
804(g), all benefits required to be restored under this section shall 
be restored within no more than 3 years from the date of enactment of 
the Emergency Retiree Health Benefits Protection Act of 2007, or the 
date the plan sponsor files an application for an exemption under 
section 804, whichever comes last.

``SEC. 804. EXEMPTION FROM RESTORATION OF BENEFITS REQUIREMENTS.

    ``(a) Application for Exemption.--Any plan sponsor of a group 
health plan that would sustain substantial business hardship if 
required to fulfill, in whole or in part, the restoration of benefits 
requirements contained in section 803, may file an application for an 
exemption with the Secretary from any or all of such requirements.
    ``(b) Authority for Waiver or Variance.--In response to an 
application filed by a plan sponsor pursuant to subsection (a), the 
Secretary may waive or vary the requirements of section 803 with 
respect to any or all of such requirements, including postponing for 
reasonable periods of time the obligation of the plan sponsor to 
restore reduced benefits, if the Secretary finds that compliance by the 
plan sponsor with the requirements of section 803 would--
            ``(1) be adverse to the interests of plan participants in 
        the aggregate;
            ``(2) not be administratively feasible; and
            ``(3) cause substantial business hardship to the plan 
        sponsor.
    ``(c) Factors Taken Into Account.--For purposes of this section, 
the factors to be taken into account in determining substantial 
business hardship shall include (but shall not be limited to) whether--
            ``(1) the plan sponsor is operating at an economic loss;
            ``(2) compliance with the restoration of benefits 
        requirements would necessitate substantial future reductions in 
        health benefits provided to participants under the plan or 
        cause a substantial decline in employment with the plan 
        sponsor;
            ``(3) it is reasonable to expect that the plan will be 
        continued only if a waiver or appropriate variance is granted; 
        and
            ``(4) the provisions of the Retiree Health Loan Guarantee 
        Program established under section 805 are unavailable to the 
        plan sponsor submitting the application, or, if available, 
        still would not provide a sufficient basis for denying a waiver 
        or variance.
    ``(d) Requirement of Satisfactory Evidence.--
            ``(1) In general.--The Secretary shall, before granting a 
        waiver or variance under this section, require each applicant 
        to provide evidence satisfactory to the Secretary that the 
        applicant has provided timely written notice of the filing of 
        an application for such waiver or variance to each retired 
        participant entitled to submit a claim for the restoration of 
        benefits under the applicant's plan.
            ``(2) Timeliness.--For purposes of paragraph (1), a written 
        notice shall be considered timely if it is provided not later 
        than 60 days prior to the date the plan sponsor files an 
        application for a waiver or variance under this section.
            ``(3) Information required.--The notice referred to in 
        paragraph (1) shall include information with respect to the 
        specific relief that will be sought by the plan sponsor's 
        application, the period of time for which relief is sought, and 
        such other relevant information as the Secretary may prescribe.
    ``(e) Participation in Proceedings by Retired Plan Participants.--
Each retired participant entitled to submit a claim for the restoration 
of benefits within the meaning of this section shall be provided a 
reasonable opportunity to submit comments or otherwise participate in 
any proceeding established by the Secretary to determine whether to 
grant or deny an application for a waiver or variance filed by the 
retired participant's plan sponsor.
    ``(f) Exception for Certain Applications.--The Secretary shall not 
be authorized to grant any application for a waiver or variance 
purporting to satisfy the requirements of subsection (b) if--
            ``(1) within the 5-year period preceding the date of the 
        plan sponsor's application the plan sponsor could have 
        transferred excess pension assets to a health benefits account 
        within the meaning of section 420 of the Internal Revenue Code 
        of 1986 (as in effect on the date of the enactment of the Tax 
        Relief Extension Act of 1999) but failed to do so, and the plan 
        sponsor is submitting an application on behalf of such retiree 
        health account; or
            ``(2) the plan sponsor submitting the application also 
        maintains a fully funded pension plan with respect to which--
                    ``(A) retired participants eligible to submit a 
                claim for the restoration of benefits under section 803 
                are also eligible to receive ad hoc cost-of-living 
                adjustment benefits;
                    ``(B) the assets of the fully funded pension plan, 
                over the past 5 years preceding the date of application 
                for a waiver or variance, on average have exceeded 120 
                percent of the plan's liabilities;
                    ``(C) the plan had no minimum funding requirement 
                to satisfy within the 5 years preceding the date of 
                application for the waiver or variance and the plan 
                sponsor submitting the application made no minimum 
                funding contribution to the fully funded pension plan 
                during such 5-year period; and
                    ``(D) the plan sponsor submitting the application 
                for a waiver or variance failed to provide an ad hoc 
                cost-of-living adjustment benefit from the fully funded 
                pension plan during the 5-year period preceding the 
                date of application for the waiver or variance.
    ``(g) Running of Restoration Period Suspended.--The submission of 
an application for a waiver or variance pursuant to this section shall 
suspend the running of any relevant restoration period as specified in 
subsection (c). Where appropriate, the Secretary shall direct the 
reopening of any relevant restoration period upon the final conclusion 
of proceedings to determine whether an application should be granted or 
denied.

``SEC. 805. ESTABLISHMENT OF EMERGENCY RETIREE HEALTH LOAN GUARANTEE 
              PROGRAM.

    ``(a) Definitions.--For purposes of this section--
            ``(1) Board.--The term `Board' means the Emergency Retiree 
        Health Loan Guarantee Board established under subsection (c).
            ``(2) Program.--The term `Program' means the Emergency 
        Retiree Health Loan Guarantee Program established under 
        subsection (b).
            ``(3) Eligible plan sponsor.--The term `eligible plan 
        sponsor' means any plan sponsor as defined in section 3(16)(B) 
        that maintains a group health plan subject to the retiree 
        health benefits restoration requirements of section 803.
    ``(b) Establishment of Emergency Retiree Health Loan Guarantee 
Program.--There is established the Retiree Health Loan Guarantee 
Program, to be administered by the Board, the purpose of which is to 
provide loan guarantees to eligible plan sponsors in accordance with 
this section.
    ``(c) Retiree Health Loan Guarantee Board Membership.--There is 
established a Retiree Health Loan Guarantee Board, which shall be 
composed of--
            ``(1) the Secretary of Labor, who shall serve as Chairman 
        of the Board;
            ``(2) the Secretary of Commerce;
            ``(3) the Secretary of the Treasury;
            ``(4) the Secretary of Health and Human Services; and
            ``(5) the Chairman of the Council of Economic Advisers.
    ``(d) Retiree Health Loan Guarantee Program.--
            ``(1) Authority.--The Program may guarantee loans provided 
        by private banking and investment institutions to eligible plan 
        sponsors for purposes of assisting such plan sponsors to meet 
        their obligations under section 803. Such loan guarantees shall 
        be provided to the extent provided in advance in appropriation 
        Acts pursuant to paragraph (4) and only in accordance with the 
        procedures, rules, and regulations established by the Board.
            ``(2) Total guarantee limit.--The aggregate amount of loans 
        guaranteed and outstanding at any time under this section may 
        not exceed $5,000,000,000.
            ``(3) Individual guarantee limit.--The aggregate amount of 
        loans guaranteed under this section with respect to a single 
        eligible plan sponsor may not exceed $5,000,000.
            ``(4) Additional costs.--For the additional cost of loans 
        guaranteed under this subsection, including the costs of 
        modifying the loans, as defined in section 502 of the 
        Congressional Budget Act of 1974 (2 U.S.C. 661a), there is 
        authorized to be appropriated $200,000,000, to remain available 
        until expended.
    ``(e) Requirements for Loan Guarantees.--A loan guarantee may be 
issued under this section upon application to the Board by an eligible 
plan sponsor pursuant to an agreement to provide a loan to that 
eligible plan sponsor by a private bank or investment company, if the 
Board determines that--
            ``(1) credit is not otherwise available to that eligible 
        plan sponsor under reasonable terms and conditions sufficient 
        to meet its financing needs with respect to the restoration of 
        retiree health benefits, as reflected in the financial and 
        business plans of that eligible plan sponsor;
            ``(2) the prospective earning power of that eligible plan 
        sponsor, together with the character and value of the security 
        pledged, furnish reasonable assurance of repayment of the loan 
        to be guaranteed in accordance with its terms;
            ``(3) the loan to be guaranteed bears interest at a rate 
        determined by the Board to be reasonable, taking into account 
        the current average yield on outstanding obligations of the 
        United States with remaining periods of maturity comparable to 
        the maturity of such loan;
            ``(4) the loan to be guaranteed will materially assist that 
        eligible plan sponsor to discharge its obligation to comply 
        with the restoration of benefits requirements contained in 
        section 803; and
            ``(5) the eligible plan sponsor has agreed to an audit by 
        the Government Accountability Office prior to the issuance of 
        the loan guarantee and annually while any such guaranteed loan 
        is outstanding.
    ``(f) Terms and Conditions of Loan Guarantee.--
            ``(1) Loan duration.--All loans guaranteed under this 
        section shall be payable in full not later than December 31, 
        2015, and the terms and conditions of each such loan shall 
        provide that the loan may not be amended or any provision 
        thereof waived without the consent of the Board.
            ``(2) Loan security.--Any commitment to issue a loan 
        guarantee under this section shall contain such affirmative and 
        negative covenants and other protective provisions that the 
        Board determines are appropriate.
            ``(3) Fees.--An eligible plan sponsor receiving a guarantee 
        under this section shall pay a fee in an amount equal to 0.5 
        percent of the outstanding principal balance of the guaranteed 
        loan to the Department of the Treasury.
    ``(g) Reports to Congress.--The Secretary of Labor shall submit 
annually to each House of the Congress a full report of the activities 
of the Board under this section during 2008 and 2009, and annually 
thereafter during such period as any loan guaranteed under this section 
is outstanding. Such report shall be submitted not later than January 
31 of each year (beginning in 2008).
    ``(h) Salaries and Administrative Expenses.--For necessary expenses 
to administer the Program, there is authorized to be appropriated to 
the Department of Labor (and to be transferred to the Office of the 
Assistant Secretary for Pension and Welfare Benefits Administration) 
$10,000,000, to remain available until expended.
    ``(i) Termination of Guarantee Authority.--The authority of the 
Board to make commitments to guarantee any loan under this section 
shall terminate on December 31, 2013.
    ``(j) Regulatory Action.--The Board shall issue such final 
procedures, rules, and regulations as may be necessary to carry out 
this section not later than 90 days after the date of enactment of the 
Emergency Retiree Health Benefits Protection Act of 2007. In no event 
shall the Board issue a procedure, rule, or regulation which authorizes 
it to approve or deny any application for a loan guarantee in more than 
270 days after receipt of such application.
    ``(k) Emergency Designation.--The entire amount made available to 
carry out this section--
            ``(1) is designated by Congress as an emergency requirement 
        pursuant to section 251(b)(2)(A) of the Balanced Budget and 
        Emergency Deficit Control Act of 1985 (2 U.S.C. 901(b)(2)(A)); 
        and
            ``(2) shall be available only to the extent that an 
        official budget request that includes designation of the entire 
        amount as an emergency requirement (as defined in the Balanced 
        Budget and Emergency Deficit Control Act of 1985) is 
        transmitted by the President to the Congress.

``SEC. 806. EFFECT ON OTHER CLAIMS.

    ``(a) Other Claims Unaffected.--Nothing contained in this part 
shall be construed to alter, impair, or eliminate any claim for retiree 
health benefits based on conduct alleged to violate the terms of a 
group health plan, any provision of this Act (other than this part), or 
both, regardless of whether such conduct occurred prior to, on, or 
after, the effective date of this part.
    ``(b) Other Causes of Action Not Authorized.--Unless the conduct 
giving rise to a claim for retiree health benefits is alleged to 
violate the provisions of this part, nothing contained in this part 
shall be construed to authorize any other cause of action for the 
recovery of retiree health benefits.

``SEC. 807. REGULATIONS.

    ``The Secretary may promulgate such regulations as may be necessary 
to carry out the provisions of this part. The Secretary may promulgate 
any interim final rules as the Secretary deems are appropriate to carry 
out this part.

``SEC. 808. ENFORCEMENT.

    ``The enforcement provisions of sections 501 and 502 shall be 
applicable to this part.''.
            (2) Civil penalty section.--Section 502(c) of the Employee 
        Retirement Income Security Act of 1974 (29 U.S.C. 1132(e)) is 
        amended--
                    (A) by redesignating paragraph (9) as paragraph 
                (10); and
                    (B) by inserting after paragraph (8) the following 
                new paragraph:
    ``(9) The Secretary may assess a civil penalty of not more than 
$1,000 for each separate violation of section 801, 802, or 803 by any 
person individually with respect to each participant or beneficiary 
aggrieved by such violation.''.
            (3) Conforming amendment.--The table of contents in section 
        1 of such Act is amended by inserting after the item relating 
        to section 734 the following new items:

         ``Part 8--Emergency Retiree Health Benefit Protections

``Sec. 801. Prohibition against post-retirement reductions of retiree 
                            health benefits by group health plans.
``Sec. 802. Adoption by group health plans of provision barring post-
                            retirement reductions in retiree health 
                            benefits.
``Sec. 803. Restoration by group health plans of benefits reduced after 
                            retirement.
``Sec. 804. Exemption from restoration of benefits requirements.
``Sec. 805. Establishment of Emergency Retiree Health Loan Guarantee 
                            Program.
``Sec. 806. Effect on other claims.
``Sec. 807. Regulations.
``Sec. 808. Enforcement.''.
    (b) Separability of Provisions.--The provisions of section 509 of 
the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1139) 
shall be applicable to this section and the amendments made thereby.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

                 TITLE II--MULTIEMPLOYER MODIFICATIONS

SEC. 201. CREDITING AND TERMINATION OF SURCHARGES IN CONNECTION WITH 
              MULTIEMPLOYER PLAN IN CRITICAL STATUS UPON ADOPTION OF 
              REHABILITATION PLAN.

    (a) Amendments to ERISA.--Section 305(e)(7) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1085(e)(7)) is 
amended by adding at the end the following new subparagraph:
                    ``(F) Special rule in the case of sufficient 
                contribution rates.--In any case in which the plan 
                sponsor of a multiemployer plan which is in critical 
                status and with respect to which the rehabilitation 
                plan has been adopted pursuant to this subsection 
                determines that the terms of a collective bargaining 
                agreement (or other agreement pursuant to which the 
                employer contributes) provide for a contribution rate 
                increase that became effective during the 24-month 
                period before the initial critical year and determines 
                that such agreement includes terms consistent with a 
                schedule presented by the plan sponsor under paragraph 
                (1)(B)(i) (as modified under paragraph (3)(B))--
                            ``(i) surcharges payable by an employer 
                        under this paragraph in connection with such 
                        critical status shall cease to be payable by 
                        the employer with respect to employees covered 
                        by such agreement on and after the date of such 
                        determination by the plan sponsor, and
                            ``(ii) any such surcharges which have been 
                        paid by an employer in connection with such 
                        critical status with respect to such employees 
                        covered under such agreement shall be credited 
                        against contributions payable by such employer 
                        under such schedule.''.
    (b) Conforming Amendments to the Code.--Section 432(e)(7) of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following new subparagraph:
                    ``(F) Special rule in the case of sufficient 
                contribution rates.--In any case in which the plan 
                sponsor of a multiemployer plan which is in critical 
                status and with respect to which the rehabilitation 
                plan has been adopted pursuant to this subsection 
                determines that the terms of a collective bargaining 
                agreement (or other agreement pursuant to which the 
                employer contributes) provide for a contribution rate 
                increase that became effective during the 24-month 
                period before the initial critical year and determines 
                that such agreement includes terms consistent with a 
                schedule presented by the plan sponsor under paragraph 
                (1)(B)(i) (as modified under paragraph (3)(B))--
                            ``(i) surcharges payable by an employer 
                        under this paragraph in connection with such 
                        critical status shall cease to be payable by 
                        the employer with respect to employees covered 
                        by such agreement on and after the date of such 
                        determination by the plan sponsor, and
                            ``(ii) any such surcharges which have been 
                        paid by an employer in connection with such 
                        critical status with respect to such employees 
                        covered under such agreement shall be credited 
                        against contributions payable by such employer 
                        under such schedule.''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to determinations made on or after the date of the 
enactment of this Act.

SEC. 202. SCHEDULES REQUIRED TO BE PROVIDED BY MULTIEMPLOYER PLANS IN 
              ENDANGERED STATUS.

    (a) Amendments to ERISA.--Section 305(c)(1)(B)(i) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1085(c)(1)(B)(i)) is 
amended--
            (1) by striking ``bargaining parties 1 or more schedules'' 
        and all that follows through
        ``including--'' and inserting ``bargaining parties--'';
            (2) in subclause (I), by inserting after ``(I)'' the 
        following: ``a schedule showing revised benefit structures, 
        revised contribution structures, or both, which, if adopted, 
        may reasonably be expected to enable the multimeployer plan to 
        meet the applicable benchmarks in accordance with the funding 
        improvement plan, including''; and
            (3) by striking subclause (II) and inserting the following:
                                    ``(II) a schedule which would 
                                consist of a combination of benefit 
                                modifications and contribution 
                                increases, and''.
    (b) Conforming Amendments to the Code.--Section 432(c)(1)(B)(i) of 
the Internal Revenue Code of 1986 is amended--
            (1) by striking ``bargaining parties 1 or more schedules'' 
        and all that follows through
        ``including--'' and inserting ``bargaining parties--'';
            (2) in subclause (I), by inserting after ``(I)'' the 
        following: ``a schedule showing revised benefit structures, 
        revised contribution structures, or both, which, if adopted, 
        may reasonably be expected to enable the multimeployer plan to 
        meet the applicable benchmarks in accordance with the funding 
        improvement plan, including''; and
            (3) by striking subclause (II) and inserting the following:
                                    ``(II) a schedule which would 
                                consist of a combination of benefit 
                                modifications and contribution 
                                increases, and''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to funding improvement plans adopted on or after the 
date of the enactment of this Act.

SEC. 203. AMENDMENTS TO FUNDING RULES FOR MULTIEMPLOYER PLANS.

    (a) Amendment Related to Sections 201 and 211.--
            (1) In general.--Section 201(b)(2)(A) of the Pension 
        Protection Act of 2006 (Public Law 109-280; 120 Stat. 867) is 
        amended by striking ``has not used'' and inserting ``has not 
        adopted, or ceased using,''.
            (2) Effective date.--The amendment made by this subsection 
        shall apply as if included in the enactment of section 201 of 
        the Pension Protection Act of 2006.
    (b) Amendments Related to Sections 202 and 212.--
            (1) Amendments to the employee retirement income security 
        act of 1974.--
                    (A) Section 305(b)(3)(C) of the Employee Retirement 
                Income Security Act of 1974 (29 U.S.C. 1085(b)(3)(C)) 
                is amended by striking ``section 101(b)(4)'' and 
                inserting ``section 101(b)(1)''.
                    (B) Section 305(b)(3)(D) of such Act (29 U.S.C. 
                1085(b)(3)(D)) is amended by striking ``The Secretary'' 
                in clause (iii) and inserting ``The Secretary of the 
                Treasury, in consultation with the Secretary''.
                    (C) Section 305(c)(7) of such Act (29 U.S.C. 
                1085(c)(7)) is amended--
                            (i) by striking ``to agree on'' and all 
                        that follows in subparagraph (A)(ii) and 
                        inserting ``to adopt a contribution schedule 
                        with terms consistent with the funding 
                        improvement plan and a schedule from the plan 
                        sponsor,'', and
                            (ii) by striking subparagraph (B) and 
                        inserting the following new subparagraph:
                    ``(B) Date of implementation.--The date specified 
                in this subparagraph is the date which is 180 days 
                after the date on which the collective bargaining 
                agreement described in subparagraph (A) expires.'', and
                            (iii) by adding at the end the following 
                        new subparagraph:
                    ``(C) Failure to make scheduled contributions.--Any 
                failure to make a contribution under a schedule of 
                contribution rates provided under this paragraph shall 
                be treated as a delinquent contribution under section 
                515 and shall be enforceable as such.''.
                    (D) Section 305(e) of such Act (29 U.S.C. 1085(e)) 
                is amended--
                            (i) in paragraph (3)(C)--
                                    (I) by striking all that follows 
                                ``to adopt a'' in clause (i)(II) and 
                                inserting ``to adopt a contribution 
                                schedule with terms consistent with the 
                                rehabilitation plan and a schedule from 
                                the plan sponsor under paragraph 
                                (1)(B)(i),'',
                                    (II) by striking clause (ii) and 
                                inserting the following new clause:
                            ``(ii) Date of implementation.--The date 
                        specified in this clause is the date which is 
                        180 days after the date on which the collective 
                        bargaining agreement described in clause (i) 
                        expires.'', and
                                    (III) by adding at the end the 
                                following new clause:
                            ``(iii) Failure to make scheduled 
                        contributions.--Any failure to make a 
                        contribution under a schedule of contribution 
                        rates provided under this subsection shall be 
                        treated as a delinquent contribution under 
                        section 515 and shall be enforceable as 
                        such.'',
                            (ii) in paragraph (4)--
                                    (I) by striking ``the date of'' in 
                                subparagraph (A)(ii), and
                                    (II) by striking ``and taking'' in 
                                subparagraph (B) and inserting ``but 
                                taking'',
                            (iii) in paragraph (6)--
                                    (I) by striking ``paragraph 
                                (1)(B)(i)'' and inserting ``the last 
                                sentence of paragraph (1)'', and
                                    (II) by striking ``established'' 
                                and inserting ``establish'',
                            (iv) in paragraph (8)(C)(iii)--
                                    (I) by striking ``the Secretary'' 
                                in subclause (I) and inserting ``the 
                                Secretary of the Treasury, in 
                                consultation with the Secretary'', and
                                    (II) by striking ``Secretary'' in 
                                the last sentence and inserting 
                                ``Secretary of the Treasury'', and
                            (v) by striking ``an employer's withdrawal 
                        liability'' in paragraph (9)(B) and inserting 
                        ``the allocation of unfunded vested benefits to 
                        an employer''.
                    (E) Section 305(f)(2)(A)(i) of such Act (29 U.S.C. 
                1085(f)(2)(A)(i)) is amended by inserting ``to a 
                participant or beneficiary whose annuity starting date 
                (as defined in section 205(h)(2)) occurs after such 
                date,'' after the comma at the end.
                    (F) Section 305(g) of such Act (29 U.S.C. 1085(g)) 
                is amended by inserting ``under subsection (c)'' after 
                ``funding improvement plan'' the first place it 
                appears.
                    (G) Section 302(b)(3) of such Act (29 U.S.C. 
                1082(b)(3)) is amended by striking ``the plan adopts'' 
                and inserting ``the plan sponsor adopts''.
                    (H) Section 502(c)(2) of such Act (29 U.S.C. 
                1132(c)(2)) is amended by striking ``101(b)(4)'' and 
                inserting ``101(b)(1)''.
                    (I) Section 502(c)(8)(A) of such Act (29 U.S.C. 
                1132(c)(8)(A)) is amended by inserting ``plan'' after 
                ``multiemployer''.
            (2) Conforming amendments to the internal revenue code of 
        1986.--
                    (A) Section 432(b)(3)(C) of the Internal Revenue 
                Code of 1986 is amended by striking ``section 
                101(b)(4)'' and inserting ``section 101(b)(1)''.
                    (B) Section 432(b)(3)(D)(iii) of such Code is 
                amended by striking ``The Secretary of Labor'' and 
                inserting ``The Secretary, in consultation with the 
                Secretary of Labor''.
                    (C) Section 432(c) of such Code is amended--
                            (i) in paragraph (3), by striking ``section 
                        304(d)'' in subparagraph (A)(ii) and inserting 
                        ``section 431(d)'', and
                            (ii) in paragraph (7)--
                                    (I) by striking ``to agree on'' and 
                                all that follows in subparagraph 
                                (A)(ii) and inserting ``to adopt a 
                                contribution schedule with terms 
                                consistent with the funding improvement 
                                plan and a schedule from the plan 
                                sponsor,'', and
                                    (II) by striking subparagraph (B) 
                                and inserting the following new 
                                subparagraph:
                    ``(B) Date of implementation.--The date specified 
                in this subparagraph is the date which is 180 days 
                after the date on which the collective bargaining 
                agreement described in subparagraph (A) expires.''.
                    (D) Section 432(e) of such Code is amended--
                            (i) in paragraph (3)(C)--
                                    (I) by striking all that follows 
                                ``to adopt a'' in clause (i)(II) and 
                                inserting ``to adopt a contribution 
                                schedule with terms consistent with the 
                                rehabilitation plan and a schedule from 
                                the plan sponsor under paragraph 
                                (1)(B)(i),'', and
                                    (II) by striking clause (ii) and 
                                inserting the following new clause:
                            ``(ii) Date of implementation.--The date 
                        specified in this clause is the date which is 
                        180 days after the date on which the collective 
                        bargaining agreement described in clause (i) 
                        expires.'',
                            (ii) in paragraph (4)--
                                    (I) by striking ``the date of'' in 
                                subparagraph (A)(ii), and
                                    (II) by striking ``and taking'' in 
                                subparagraph (B) and inserting ``but 
                                taking'',
                            (iii) in paragraph (6)--
                                    (I) by striking ``paragraph 
                                (1)(B)(i)'' and inserting ``the last 
                                sentence of paragraph (1)'', and
                                    (II) by striking ``established'' 
                                and inserting ``establish'',
                            (iv) in paragraph (8)--
                                    (I) by striking ``section 204(g)'' 
                                in subparagraph (A)(i) and inserting 
                                ``section 411(d)(6)'',
                                    (II) by inserting ``of the Employee 
                                Retirement Income Security Act of 
                                1974'' after ``4212(a)'' in 
                                subparagraph (C)(i)(II),
                                    (III) by striking ``the Secretary 
                                of Labor'' in subparagraph (C)(iii)(I) 
                                and inserting ``the Secretary, in 
                                consultation with the Secretary of 
                                Labor'', and
                                    (IV) by striking ``the Secretary of 
                                Labor'' in the last sentence of 
                                subparagraph (C)(iii) and inserting 
                                ``the Secretary'', and
                            (v) by striking ``an employer's withdrawal 
                        liability'' in paragraph (9)(B) and inserting 
                        ``the allocation of unfunded vested benefits to 
                        an employer''.
                    (E) Section 432(f)(2)(A)(i) of such Code is 
                amended--
                            (i) by striking ``section 411(b)(1)(A)'' 
                        and inserting ``section 411(a)(9)'', and
                            (ii) by inserting ``to a participant or 
                        beneficiary whose annuity starting date (as 
                        defined in section 417(f)(2)) occurs after such 
                        date,'' after the comma at the end.
                    (F) Section 432(g) of such Code is amended by 
                inserting ``under subsection (c)'' after ``funding 
                improvement plan'' the first place it appears.
                    (G) Section 432(i) of such Code is amended--
                            (i) by striking ``section 412(a)'' in 
                        paragraph (3) and inserting ``section 431(a)'', 
                        and
                            (ii) by striking paragraph (9) and 
                        inserting the following new paragraph:
            ``(9) Plan sponsor.--For purposes of this section, section 
        431, and section 4971(g)--
                    ``(A) In general.--The term `plan sponsor' means, 
                with respect to any multiemployer plan, the 
                association, committee, joint board of trustees, or 
                other similar group of representatives of the parties 
                who establish or maintain the plan.
                    ``(B) Special rule for section 404(c) plans.--In 
                the case of a plan described in section 404(c) (or a 
                continuation of such plan), such term means the 
                bargaining parties described in paragraph (1).''.
                    (H) Section 412(b)(3) of such Code is amended by 
                striking ``the plan adopts'' and inserting ``the plan 
                sponsor adopts''.
                    (I) Section 4971(g)(4) of such Code is amended--
                            (i) in subparagraph (B)(ii), by striking 
                        ``first day of'' and inserting ``day following 
                        the close of'', and
                            (ii) by striking clause (ii) of 
                        subparagraph (C) and inserting the following 
                        new clause:
                            ``(ii) Plan sponsor.--For purposes of 
                        clause (i), the term `plan sponsor' has the 
                        meaning given such term by section 
                        432(i)(9).''.
            (3) Amendments to the pension protection act of 2006.--
                    (A) Section 212(b)(2) of the Pension Protection Act 
                of 2006 (Public Law 109-280; 120 Stat. 917) is amended 
                by striking ``Section 4971(c)(2) of such Code'' and 
                inserting ``Section 4971(e)(2) of such Code''.
                    (B) Section 212(e)(1) of such Act (Public Law 109-
                280; 120 Stat. 917) is amended by inserting ``, except 
                that the amendments made by subsection (b) shall apply 
                to taxable years beginning after 2007, but only with 
                respect to plan years beginning after 2007 which end 
                with or within any such taxable year'' before the 
                period at the end.
                    (C) Section 212(e)(2) of such Act (Public Law 109-
                280; 120 Stat. 917) is amended by striking ``section 
                305(b)(3) of the Employee Retirement Income Security 
                Act of 1974'' and inserting ``section 432(b)(3) of the 
                Internal Revenue Code of 1986''.
            (4) Effective dates.--
                    (A) The amendments made by paragraphs (1) and (2) 
                shall take effect as if included in the enactment of 
                sections 202 and 212, respectively, of the Pension 
                Protection Act of 2006.
                    (B) The amendments made by paragraph (3) shall take 
                effect as if included in the enactment of section 212 
                of the Pension Protection Act of 2006.

                TITLE III--SINGLE-EMPLOYER MODIFICATIONS

SEC. 301. ASSET SMOOTHING.

    (a) Amendment to ERISA.--The last sentence of section 303(g)(3)(B) 
of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 
1083(g)(3)(B)) is amended to read as follows: ``Any such averaging 
shall be adjusted for contributions, distributions, and expected 
earnings (as determined by the plan's actuary on the basis of an 
assumed earnings rate specified by the actuary but not in excess of the 
third segment rate applicable under subsection (h)(2)(C)(iii)), as 
specified by the Secretary of the Treasury.''.
    (b) Conforming Amendment to Internal Revenue Code.--The last 
sentence of section 430(g)(3)(B) of the Internal Revenue Code of 1986 
is amended to read as follows: ``Any such averaging shall be adjusted 
for contributions, distributions, and expected earnings (as determined 
by the plan's actuary on the basis of an assumed earnings rate 
specified by the actuary but not in excess of the third segment rate 
applicable under subsection (h)(2)(C)(iii)), as specified by the 
Secretary.''.
    (c) Effective Date.--The amendments made by subsections (a) and (b) 
shall apply as if included in the enactment of sections 102 and 112, 
respectively, of the Pension Protection Act of 2006.

SEC. 302. PROHIBITED PAYMENTS.

    (a) Amendment to ERISA.--Paragraph (3) of section 206(g) of the 
Employee Retirement Income Security Act of 1974 (29 U.S.C. 1056(g)(3)) 
is amended--
            (1) by striking subparagraph (C) and redesignating 
        subparagraphs (D) and (E) as subparagraphs (C) and (D), 
        respectively; and
            (2) by striking subparagraph (A) and inserting the 
        following:
                    ``(A) Funding percentage less than 80 percent.--A 
                defined benefit plan which is a single-employer plan 
                shall provide that, in any case in which the plan's 
                adjusted funding target attainment percentage for a 
                plan year is less than 80 percent, the plan may not pay 
                any prohibited payment after the valuation date for the 
                plan year to the extent the amount of the payment 
                exceeds the product of---
                            ``(i) the amount of the payment which could 
                        be made without regard to this subsection; 
                        multiplied by
                            ``(ii) the plan's adjusted funding target 
                        attainment percentage for the plan year.''.
    (b) Conforming Amendment to Internal Revenue Code.--Subsection (d) 
of section 436 of the Internal Revenue Code of 1986 is amended--
            (1) by striking paragraph (3) and redesignating paragraphs 
        (4) and (5) as subparagraphs (3) and (4), respectively; and
            (2) by striking paragraph (1) and inserting the following:
            ``(1) Funding percentage less than 80 percent.--A defined 
        benefit plan which is a single-employer plan shall provide 
        that, in any case in which the plan's adjusted funding target 
        attainment percentage for a plan year is less than 80 percent, 
        the plan may not pay any prohibited payment after the valuation 
        date for the plan year to the extent the amount of the payment 
        exceeds the product of--
                    ``(A) the amount of the payment which could be made 
                without regard to this subsection; multiplied by
                    ``(B) the plan's adjusted funding target attainment 
                percentage for the plan year.''.
    (c) Effective Date.--The amendments made by subsections (a) and (b) 
shall apply as if included in the enactment of sections 103 and 113, 
respectively, of the Pension Protection Act of 2006.

SEC. 303. CLARIFICATION OF AGE DISCRIMINATION RULES IN CONNECTION WITH 
              THE YOUNG WOMEN'S CHRISTIAN ASSOCIATION PENSION PLAN.

    (a) Purpose.--The purpose of this section is to clarify the age 
discrimination rules under section 204(b)(1)(H) of the Employee 
Retirement Income Security Act of 1974 and section 4(i)(1) of the Age 
Discrimination in Employment Act of 1967, as they relate, in connection 
with benefits provided under the Young Women's Christian Association 
Pension Plan, to periods prior to June 29, 2005, during which 
violations of such rules are alleged to have occurred in civil actions 
commenced on or after April 25, 2007.
    (b) Clarification of Age Discrimination Rules.--In the case of any 
civil action which--
            (1) is commenced on or after April 25, 2007, and
            (2) alleges a violation of section 204(b)(1)(H) of the 
        Employee Retirement Income Security Act of 1974 (29 U.S.C. 
        1054(b)(1)(H)) or section 4(i)(1) of the Age Discrimination in 
        Employment Act of 1967 (29 U.S.C. 623(i)(1)) occurring before 
        June 29, 2005, with respect to any benefit provided under the 
        Young Women's Christian Association Pension Plan,
such sections 204(b)(1)(H) and 4(i)(1) shall be applied as if paragraph 
(5) of section 204(b) of the Employee Retirement Income Security Act of 
1974 (as added by section 701(a)(1) of the Pension Protection Act of 
2006 (29 U.S.C. 1054(b)(5); 120 Stat. 981) and paragraph (10) of 
section 4(i) of the Age Discrimination in Employment Act of 1967 (29 
U.S.C. 623(i)(10); 120 Stat. 998) applied to any period in which such 
alleged violation occurred.
    (c) Young Women's Christian Association Pension Plan.--For purposes 
of this section, the term ``Young Women's Christian Association Pension 
Plan'' means the defined benefit plan (as defined in section 3(35) of 
the Employee Retirement Income Security Act of 1974) established on 
January 1, 1926, and maintained by the Young Women's Christian 
Association Retirement Fund, a corporation created by an Act of the 
State of New York which became law on April 12, 1924.

SEC. 304. PROHIBITED TRANSACTIONS EXEMPTION FOR DIVESTMENT OF EMPLOYER 
              SECURITIES.

    (a) Amendment to the Employee Retirement Income Security Act of 
1974.--Section 408(b) of the Employee Retirement Income Security Act of 
1974 (29 U.S.C. 1108(b)) is amended by adding at the end the following 
new paragraph:
    ``(21) Prohibited Transactions Exemption for Divestment of Employer 
Securities.--A transaction involving the sale of employer securities 
held in the account of a plan participant under the plan, if--
            ``(A) the proceeds from the sale are invested in the 
        account,
            ``(B) the notice requirements of section 404(c)(5)(B) are 
        met in connection with the plan with respect to the plan year 
        during which the transaction occurs,
            ``(C) under the plan--
                    ``(i) the participant is treated as having elected 
                to effect the transaction, in the absence of a specific 
                election by the participant not to have the transaction 
                effected, and
                    ``(ii) participants are provided a reasonable 
                period of time after the notice provided pursuant to 
                section 404(c)(5)(B) with respect to each plan year and 
                before the beginning of such plan year to make such a 
                specific election, and
            ``(D) the transaction is consistent with regulations which 
        shall be promulgated by the Secretary and which shall take into 
        account the importance of diversifying the investment of 
        retirement account assets as a plan participant nears 
        retirement age.''.
    (b) Conforming Amendments to the Internal Revenue Code of 1986.--
Subsection (d) of section 4975 of the Internal Revenue Code of 1986 
(relating to exemptions) is amended by striking ``or'' at the end of 
paragraph (22), by striking the period at the end of paragraph (23) and 
inserting ``,  or'', and by adding at the end the following new 
paragraph:
            ``(24) Prohibited transactions exemption for divestment of 
        employer securities.--A transaction involving the sale of 
        employer securities held in the account of a plan participant 
        under the plan, if--
                    ``(A) the proceeds from the sale are invested in 
                the account,
                    ``(B) the notice requirements of section 
                404(c)(5)(B) of the Employee Retirement Income Security 
                Act of 1974 are met in connection with the plan with 
                respect to the plan year during which the transaction 
                occurs,
                    ``(C) under the plan--
                            ``(i) the participant is treated as having 
                        elected to effect the transaction, in the 
                        absence of a specific election by the 
                        participant not to have the transaction 
                        effected, and
                            ``(ii) participants are provided a 
                        reasonable period of time after the notice 
                        provided pursuant to section 404(c)(5)(B) of 
                        the Employee Retirement Income Security Act of 
                        1974 with respect to each plan year and before 
                        the beginning of such plan year to make such a 
                        specific election, and
                    ``(D) the transaction is consistent with 
                regulations promulgated by the Secretary of Labor 
                pursuant to section 408(b)(21)(D) of the Employee 
                Retirement Income Security Act of 1974.''.
    (c) Issuance of Regulations.--The Secretary of Labor shall issue 
initial final regulations pursuant to section 408(b)(21)(D) of the 
Employee Retirement Income Security Act of 1974 (as added by this 
section) not later than 180 days after the date of the enactment of 
this Act.
    (d) Effective Date.--The amendments made by this section shall 
apply to transactions occurring after the date of the enactment of this 
Act.

SEC. 305. SPECIAL RULE RELATING TO AT-RISK STATUS FOR EMPLOYEES OFFERED 
              EARLY RETIREMENT IN 2006 OR 2007.

    (a) Amendments to ERISA.--Section 303(i)(4)(C) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1083(i)(4)(C)(i)) is 
amended--
            (1) in the heading, by inserting ``or 2007'' after 
        ``2006'';
            (2) in clause (i)(II), by striking ``2010'' and inserting 
        ``2011''; and
            (3) in clause (i)(III), by inserting ``or 2007'' after 
        ``2006'' the first place it appears, and by striking ``2006'' 
        the second place it appears and inserting ``2007''.
    (b) Conforming Amendments to the Internal Revenue Code of 1986.--
Section 430(i)(4)(C) of the Internal Revenue Code of 1986 (relating to 
special rule for employees offered early retirement in 2006) is 
amended--
            (1) in the heading, by inserting ``or 2007'' after 
        ``2006'';
            (2) in clause (i)(II), by striking ``2010'' and inserting 
        ``2011''; and
            (3) in clause (ii)(III), by inserting ``or 2007'' after 
        ``2006'' the first place it appears, and by striking ``2006'' 
        the second place it appears and inserting ``2007''.
    (c) Effective Date.--The amendments made by subsections (a) and (b) 
shall apply as if included in the enactment of sections 102 and 112, 
respectively, of the Pension Protection Act of 2006.

SEC. 306. PHASE-IN OF FUNDING TARGET.

    (a) Amendment to ERISA.--Subparagraph (B) of section 303(c)(5) of 
the Employee Retirement Income Security Act of 1974 (as amended by this 
Act) is further amended--
            (1) by striking clause (iii) and redesignating clause (iv) 
        as clause (iii); and
            (2) by striking clause (i) and inserting the following:
                            ``(i) In general.--Except as provided in 
                        clause (iii), in the case of plan years 
                        beginning after the applicable funding pre-
                        effective date year (as defined in section 
                        21(i)(1) of the Pension Protection Act 
                        Amendments of 2008) and before the calendar 
                        year that is three years after the applicable 
                        funding effective date year (as defined in 
                        section 21(i)(2) of the Pension Protection Act 
                        Amendments of 2007), only the applicable 
                        percentage of the funding target shall be taken 
                        into account under paragraph (3)(A) in 
                        determining the funding shortfall for purposes 
                        of paragraph (3)(A) and subparagraph (A).''.
    (b) Conforming Amendment to Internal Revenue Code.--Subparagraph 
(B) of section 430(c)(5) of the Internal Revenue Code of 1986 (as 
amended by this Act) is further amended--
            (1) by striking clause (iii) and redesignating clause (iv) 
        as clause (iii); and
            (2) by striking clause (i) and inserting the following:
                            ``(i) In general.--Except as provided in 
                        clause (iii), in the case of plan years 
                        beginning after the applicable funding pre-
                        effective date year (as defined in section 
                        21(i)(1) of the Pension Protection Act 
                        Amendments of 2008) and before the calendar 
                        year that is three years after the applicable 
                        funding effective date year (as defined in 
                        section 21(i)(2) of the Pension Protection Act 
                        Amendments of 2007), only the applicable 
                        percentage of the funding target shall be taken 
                        into account under paragraph (3)(A) in 
                        determining the funding shortfall for purposes 
                        of paragraph (3)(A) and subparagraph (A).''.
    (c) Effective Date.--The amendments made by subsections (a) and (b) 
shall apply as if included in the enactment of sections 102 and 112, 
respectively, of the Pension Protection Act of 2006.

                 TITLE IV--SMALL EMPLOYER MODIFICATIONS

SEC. 401. TREATMENT OF EMPLOYEES OF CERTAIN COOPERATIVES AS AFFILIATED 
              SERVICE GROUP EMPLOYEES.

    (a) In General.--Section 210 of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1060) is amended by adding at the end 
the following new subsection:
    ``(f) Treatment of Employees of Certain Cooperatives as Affiliated 
Service Group Employees.--
            ``(1) In general.--For purposes of sections 202, 203, and 
        204--
                    ``(A) all employees of all shareholders of a 
                corporation which is an affiliated service group shall 
                be treated as employed by such corporation as a single 
                employer, and
                    ``(B) a plan maintained by a corporation which is 
                an affiliated service group shall be treated as a 
                single-employer plan maintained by the corporation.
            ``(2) Affiliated service group.--For purposes of this 
        subsection, the term `affiliated service group' means a 
        corporation if--
                    ``(A) the corporation has at least 21 shareholders 
                and operates on a cooperative basis subject to the 
                provisions of subchapter T of chapter 1 of the Internal 
                Revenue Code of 1986,
                    ``(B) all shareholders of the corporation engage in 
                business operations using the same four-digit North 
                American Industrial Classification System (NAIC) code 
                root, and
                    ``(C) the corporation assumes responsibility 
                pursuant to a written agreement with each shareholder, 
                with respect to all worksite employees providing 
                services to such shareholder, for the provision of 
                employee benefits.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to plan years beginning on or after the date of the enactment of this 
Act.

             TITLE V--PROHIBITED TRANSACTIONS MODIFICATIONS

SEC. 501. CLARIFICATION OF PARTIES IN INTEREST AFFECTED BY PROHIBITED 
              TRANSACTION EXEMPTION FOR BLOCK TRADING.

    (a) Amendment to ERISA.--Section 408(b)(15)(A) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1108(b)(15)(A)) is 
amended--
            (1) by striking ``a party in interest (other than a 
        fiduciary described in section 3(21)(A)) with respect to a 
        plan'' and inserting ``a party in interest (other than a 
        fiduciary described in section 3(21)(A) who has investment 
        discretion or provides investment advice with respect to the 
        transaction)''; and
            (2) in clause (i), by inserting ``directed by a fiduciary 
        described in section 3(21)(A)'' after ``block trade''.
    (b) Conforming Amendment to the Code.--Paragraph (18) of section 
4975(d) of the Internal Revenue Code of 1986 (relating to exemptions 
from prohibited transactions) is amended--
            (1) by striking ``a party in interest (other than a 
        fiduciary described in subsection (e)(3)(B))'' and inserting 
        ``a disqualified person (other than a fiduciary who has 
        investment discretion or provides investment advice with 
        respect to the transaction)''; and
            (2) in subparagraph (A), by inserting ``directed by a 
        fiduciary described in subsection (e)(3)(B)'' after ``block 
        trade''.
    (c) Effective Date.--The amendments made by this section shall 
apply as if included in the enactment of section 601 of the Pension 
Protection Act of 2006.

SEC. 502. CLARIFICATION OF SCOPE OF PROHIBITED TRANSACTION EXEMPTION 
              FOR ELECTRONIC COMMUNICATION NETWORKS.

    (a) Amendments to ERISA.--Section 408(b)(16) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1108(b)) is amended--
            (1) in subparagraph (A), by inserting ``exchange, automated 
        quotation system,'' after ``electronic communication 
        network,'';
            (2) in subparagraph (D), by striking ``if the party in 
        interest has an ownership interest'' and inserting ``if the 
        fiduciary directing the transaction has an ownership interest 
        of at least 10 percent by value''; and
            (3) in subparagraph (E), by inserting after ``(E)'' the 
        following: ``if the fiduciary directing the transaction has an 
        ownership interest of at least 10 percent by value in the 
        system or venue described in subparagraph (A),''.
    (b) Conforming Amendments to Code.--Paragraph (19) of section 
4975(d) of the Internal Revenue Code of 1986 (relating to exemptions 
from prohibited transactions) is amended--
            (1) in subparagraph (A), by inserting ``exchange, automated 
        quotation system,'' after ``electronic communication 
        network,'';
            (2) in subparagraph (D), by striking ``if the party in 
        interest has an ownership interest'' and inserting ``if the 
        fiduciary directing the transaction has an ownership interest 
        of at least 10 percent by value''; and
            (3) in subparagraph (E), by inserting after ``(E)'' the 
        following: ``if the fiduciary directing the transaction has an 
        ownership interest of at least 10 percent by value in the 
        system or venue described in subparagraph (A),''.
    (c) Effective Date.--The amendments made by this section shall 
apply as if included in the enactment of section 611 of the Pension 
Protection Act of 2006.

SEC. 503. INCREASE IN MAXIMUM BOND AMOUNT FOR PLANS HOLDING EMPLOYER 
              SECURITIES.

    (a) In General.--Section 412(a) of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1112(a)) is amended by striking the 
last sentence and inserting the following: ``In any case in which a 
dedicated portfolio of plan assets is primarily invested in employer 
securities (within the meaning of section 407(d)(1)), if such employer 
securities have been contributed directly by the plan sponsor (or an 
affiliate (within the meaning of section 408(g)(11)(B)) of the plan 
sponsor) or the decision to purchase such employer securities has been 
made by an employee of the plan sponsor (or of such an affiliate of the 
plan sponsor), this subsection shall be applied in requiring each 
person who handles such plan assets to be bonded by substituting in 
this subsection `$1,000,000' for `$500,000' each place it appears.''.
    (b) Effective Date.--The amendment made by this section shall apply 
as if included in the enactment of section 622 of the Pension 
Protection Act of 2006.
                                 <all>